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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Helen of Troy Ltd | NASDAQ:HELE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.81 | 0.87% | 93.52 | 93.27 | 94.23 | 95.40 | 92.07 | 92.53 | 564,937 | 23:43:22 |
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Title of each class
|
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Trading Symbol
|
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Name of each exchange on which registered
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Common Shares, $0.10 par value per share
|
|
HELE
|
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The NASDAQ Stock Market, LLC
|
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PAGE
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(in thousands, except shares and par value)
|
November 30, 2019
|
|
February 28, 2019
|
||||
Assets
|
|
|
|
||||
Assets, current:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
19,637
|
|
|
$
|
11,871
|
|
Receivables - principally trade, less allowances of $1,486 and $2,032
|
365,543
|
|
|
280,280
|
|
||
Inventory
|
333,656
|
|
|
302,339
|
|
||
Prepaid expenses and other current assets
|
10,403
|
|
|
10,369
|
|
||
Total assets, current
|
729,239
|
|
|
604,859
|
|
||
|
|
|
|
||||
Property and equipment, net of accumulated depreciation of $133,764 and $123,744
|
131,179
|
|
|
130,338
|
|
||
Goodwill
|
602,320
|
|
|
602,320
|
|
||
Other intangible assets, net of accumulated amortization of $194,562 and $181,463
|
279,028
|
|
|
291,526
|
|
||
Operating lease assets
|
33,528
|
|
|
—
|
|
||
Deferred tax assets, net
|
12,926
|
|
|
7,991
|
|
||
Other assets, net of accumulated amortization of $2,167 and $2,115
|
2,869
|
|
|
12,501
|
|
||
Total assets
|
$
|
1,791,089
|
|
|
$
|
1,649,535
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
||
Liabilities, current:
|
|
|
|
|
|
||
Accounts payable, principally trade
|
$
|
141,523
|
|
|
$
|
143,560
|
|
Accrued expenses and other current liabilities
|
171,269
|
|
|
165,160
|
|
||
Income taxes payable
|
3,223
|
|
|
1,427
|
|
||
Long-term debt, current maturities
|
1,884
|
|
|
1,884
|
|
||
Total liabilities, current
|
317,899
|
|
|
312,031
|
|
||
|
|
|
|
||||
Long-term debt, excluding current maturities
|
242,363
|
|
|
318,900
|
|
||
Lease liabilities, non-current
|
41,760
|
|
|
—
|
|
||
Deferred tax liabilities, net
|
8,439
|
|
|
5,748
|
|
||
Other liabilities, non-current
|
18,944
|
|
|
16,219
|
|
||
Total liabilities
|
629,405
|
|
|
652,898
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
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||
|
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|
||||
Stockholders' equity:
|
|
|
|
|
|
||
Cumulative preferred stock, non-voting, $1.00 par. Authorized 2,000,000 shares; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.10 par. Authorized 50,000,000 shares; 25,166,771 and 24,946,046 shares issued and outstanding
|
2,517
|
|
|
2,495
|
|
||
Additional paid in capital
|
262,731
|
|
|
246,585
|
|
||
Accumulated other comprehensive income (loss)
|
(4,885
|
)
|
|
1,191
|
|
||
Retained earnings
|
901,321
|
|
|
746,366
|
|
||
Total stockholders' equity
|
1,161,684
|
|
|
996,637
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,791,089
|
|
|
$
|
1,649,535
|
|
|
Three Months Ended November 30,
|
|
Nine Months Ended November 30,
|
||||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales revenue, net
|
$
|
474,737
|
|
|
$
|
431,081
|
|
|
$
|
1,265,067
|
|
|
$
|
1,179,308
|
|
Cost of goods sold
|
264,764
|
|
|
249,236
|
|
|
723,216
|
|
|
695,732
|
|
||||
Gross profit
|
209,973
|
|
|
181,845
|
|
|
541,851
|
|
|
483,576
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expense ("SG&A")
|
130,692
|
|
|
120,524
|
|
|
359,794
|
|
|
325,684
|
|
||||
Restructuring charges
|
12
|
|
|
25
|
|
|
1,061
|
|
|
2,609
|
|
||||
Operating income
|
79,269
|
|
|
61,296
|
|
|
180,996
|
|
|
155,283
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-operating income, net
|
92
|
|
|
15
|
|
|
313
|
|
|
175
|
|
||||
Interest expense
|
(2,767
|
)
|
|
(2,971
|
)
|
|
(9,291
|
)
|
|
(8,413
|
)
|
||||
Income before income tax
|
76,594
|
|
|
58,340
|
|
|
172,018
|
|
|
147,045
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense
|
7,895
|
|
|
4,020
|
|
|
16,530
|
|
|
10,535
|
|
||||
Income from continuing operations
|
68,699
|
|
|
54,320
|
|
|
155,488
|
|
|
136,510
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations, net of tax
|
—
|
|
|
(4,850
|
)
|
|
—
|
|
|
(5,231
|
)
|
||||
Net income
|
$
|
68,699
|
|
|
$
|
49,470
|
|
|
$
|
155,488
|
|
|
$
|
131,279
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share - basic:
|
|
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
2.73
|
|
|
$
|
2.08
|
|
|
$
|
6.19
|
|
|
$
|
5.19
|
|
Discontinued operations
|
—
|
|
|
(0.19
|
)
|
|
—
|
|
|
(0.20
|
)
|
||||
Total earnings per share - basic
|
$
|
2.73
|
|
|
$
|
1.90
|
|
|
$
|
6.19
|
|
|
$
|
4.99
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share - diluted:
|
|
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
2.71
|
|
|
$
|
2.06
|
|
|
$
|
6.15
|
|
|
$
|
5.15
|
|
Discontinued operations
|
—
|
|
|
(0.18
|
)
|
|
—
|
|
|
(0.20
|
)
|
||||
Total earnings per share - diluted
|
$
|
2.71
|
|
|
$
|
1.88
|
|
|
$
|
6.15
|
|
|
$
|
4.95
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|||||||
Basic
|
25,161
|
|
|
26,057
|
|
|
25,099
|
|
|
26,321
|
|
||||
Diluted
|
25,396
|
|
|
26,366
|
|
|
25,295
|
|
|
26,520
|
|
|
Three Months Ended November 30,
|
|
Nine Months Ended November 30,
|
||||||||||
(in thousands)
|
2019
|
2018
|
|
2019
|
2018
|
||||||||
Net income
|
$
|
68,699
|
|
$
|
49,470
|
|
|
$
|
155,488
|
|
$
|
131,279
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||||
Cash flow hedge activity - interest rate swaps
|
1,599
|
|
46
|
|
|
(5,562
|
)
|
251
|
|
||||
Cash flow hedge activity - foreign currency contracts
|
(1,729
|
)
|
514
|
|
|
(514
|
)
|
4,325
|
|
||||
Total other comprehensive income (loss), net of tax
|
(130
|
)
|
560
|
|
|
(6,076
|
)
|
4,576
|
|
||||
Comprehensive income
|
$
|
68,569
|
|
$
|
50,030
|
|
|
$
|
149,412
|
|
$
|
135,855
|
|
|
Common Stock
|
Additional Paid in Capital
|
Accumulated Other Comprehensive Income (Loss)
|
Retained Earnings
|
Total Shareholders' Equity
|
||||||||||||
(in thousands, including shares)
|
Shares
|
Par
Value
|
|||||||||||||||
Balances at August 31, 2018
|
26,380
|
|
$
|
2,635
|
|
$
|
241,633
|
|
$
|
4,647
|
|
$
|
826,825
|
|
$
|
1,075,740
|
|
Income from continuing operations
|
—
|
|
—
|
|
—
|
|
—
|
|
54,320
|
|
54,320
|
|
|||||
Loss from discontinued operations
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,850
|
)
|
(4,850
|
)
|
|||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
560
|
|
—
|
|
560
|
|
|||||
Exercise of stock options
|
10
|
|
1
|
|
565
|
|
—
|
|
—
|
|
566
|
|
|||||
Net issuance and settlement of restricted stock
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Issuance of common stock related to stock purchase plan
|
14
|
|
1
|
|
1,076
|
|
—
|
|
—
|
|
1,077
|
|
|||||
Common stock repurchased and retired
|
(815
|
)
|
(81
|
)
|
(4,396
|
)
|
—
|
|
(95,698
|
)
|
(100,175
|
)
|
|||||
Share-based compensation
|
—
|
|
—
|
|
6,016
|
|
—
|
|
—
|
|
6,016
|
|
|||||
Cumulative effect of accounting change
|
—
|
|
(22
|
)
|
(6
|
)
|
—
|
|
32
|
|
4
|
|
|||||
Balances at November 30, 2018
|
25,593
|
|
$
|
2,534
|
|
$
|
244,888
|
|
$
|
5,207
|
|
$
|
780,629
|
|
$
|
1,033,258
|
|
|
|
|
|
|
|
|
|||||||||||
Balances at February 28, 2018
|
26,576
|
|
$
|
2,658
|
|
$
|
230,676
|
|
$
|
631
|
|
$
|
780,494
|
|
$
|
1,014,459
|
|
Income from continuing operations
|
—
|
|
—
|
|
—
|
|
—
|
|
136,510
|
|
136,510
|
|
|||||
Loss from discontinued operations
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,231
|
)
|
(5,231
|
)
|
|||||
Other comprehensive income, net of tax
|
—
|
|
—
|
|
—
|
|
4,576
|
|
—
|
|
4,576
|
|
|||||
Exercise of stock options
|
121
|
|
12
|
|
6,069
|
|
—
|
|
—
|
|
6,081
|
|
|||||
Net issuance and settlement of restricted stock
|
144
|
|
14
|
|
(14
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Issuance of common stock related to stock purchase plan
|
31
|
|
3
|
|
2,409
|
|
—
|
|
—
|
|
2,412
|
|
|||||
Common stock repurchased and retired
|
(1,279
|
)
|
(127
|
)
|
(11,273
|
)
|
—
|
|
(131,015
|
)
|
(142,415
|
)
|
|||||
Share-based compensation
|
—
|
|
—
|
|
17,029
|
|
—
|
|
—
|
|
17,029
|
|
|||||
Cumulative effect of accounting change
|
—
|
|
(26
|
)
|
(8
|
)
|
—
|
|
(129
|
)
|
(163
|
)
|
|||||
Balances at November 30, 2018
|
25,593
|
|
$
|
2,534
|
|
$
|
244,888
|
|
$
|
5,207
|
|
$
|
780,629
|
|
$
|
1,033,258
|
|
|
|
|
|
|
|
|
|||||||||||
Balances at August 31, 2019
|
25,130
|
|
$
|
2,513
|
|
$
|
256,995
|
|
$
|
(4,755
|
)
|
$
|
832,622
|
|
$
|
1,087,375
|
|
Income from continuing operations
|
—
|
|
—
|
|
—
|
|
—
|
|
68,699
|
|
68,699
|
|
|||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
(130
|
)
|
—
|
|
(130
|
)
|
|||||
Exercise of stock options
|
7
|
|
1
|
|
556
|
|
—
|
|
—
|
|
557
|
|
|||||
Net issuance and settlement of restricted stock
|
21
|
|
3
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Issuance of common stock related to stock purchase plan
|
15
|
|
1
|
|
1,426
|
|
—
|
|
—
|
|
1,427
|
|
|||||
Common stock repurchased and retired
|
(6
|
)
|
(1
|
)
|
(1,001
|
)
|
—
|
|
—
|
|
(1,002
|
)
|
|||||
Share-based compensation
|
—
|
|
—
|
|
4,758
|
|
—
|
|
—
|
|
4,758
|
|
|||||
Balances at November 30, 2019
|
25,167
|
|
$
|
2,517
|
|
$
|
262,731
|
|
$
|
(4,885
|
)
|
$
|
901,321
|
|
$
|
1,161,684
|
|
|
|
|
|
|
|
|
|||||||||||
Balances at February 28, 2019
|
24,946
|
|
$
|
2,495
|
|
$
|
246,585
|
|
$
|
1,191
|
|
$
|
746,366
|
|
$
|
996,637
|
|
Income from continuing operations
|
—
|
|
—
|
|
—
|
|
—
|
|
155,488
|
|
155,488
|
|
|||||
Other comprehensive loss, net of tax
|
—
|
|
—
|
|
—
|
|
(6,076
|
)
|
—
|
|
(6,076
|
)
|
|||||
Exercise of stock options
|
69
|
|
7
|
|
4,183
|
|
—
|
|
—
|
|
4,190
|
|
|||||
Net issuance and settlement of restricted stock
|
199
|
|
21
|
|
(21
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Issuance of common stock related to stock purchase plan
|
30
|
|
2
|
|
2,833
|
|
—
|
|
—
|
|
2,835
|
|
|||||
Common stock repurchased and retired
|
(77
|
)
|
(8
|
)
|
(9,592
|
)
|
—
|
|
(533
|
)
|
(10,133
|
)
|
|||||
Share-based compensation
|
—
|
|
—
|
|
18,743
|
|
—
|
|
—
|
|
18,743
|
|
|||||
Balances at November 30, 2019
|
25,167
|
|
$
|
2,517
|
|
$
|
262,731
|
|
$
|
(4,885
|
)
|
$
|
901,321
|
|
$
|
1,161,684
|
|
|
Nine Months Ended November 30,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash provided by operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
155,488
|
|
|
$
|
131,279
|
|
Less: Loss from discontinued operations
|
—
|
|
|
(5,231
|
)
|
||
Income from continuing operations
|
155,488
|
|
|
136,510
|
|
||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
24,876
|
|
|
22,490
|
|
||
Amortization of financing costs
|
763
|
|
|
761
|
|
||
Non-cash operating lease asset amortization
|
1,371
|
|
|
—
|
|
||
Provision for doubtful receivables
|
484
|
|
|
725
|
|
||
Non-cash share-based compensation
|
18,743
|
|
|
17,029
|
|
||
Gain on the sale or disposal of property and equipment
|
(14
|
)
|
|
(536
|
)
|
||
Deferred income taxes and tax credits
|
(511
|
)
|
|
4,060
|
|
||
Changes in operating capital, net of effects of acquisition of businesses:
|
|
|
|
|
|
||
Receivables
|
(85,747
|
)
|
|
(64,284
|
)
|
||
Inventories
|
(31,317
|
)
|
|
(49,137
|
)
|
||
Prepaid expenses and other current assets
|
(1,269
|
)
|
|
(1,149
|
)
|
||
Other assets and liabilities, net
|
21,091
|
|
|
5,554
|
|
||
Accounts payable
|
(2,037
|
)
|
|
16,694
|
|
||
Accrued expenses and other current liabilities
|
477
|
|
|
17,809
|
|
||
Accrued income taxes
|
(980
|
)
|
|
2,969
|
|
||
Net cash provided by operating activities - continuing operations
|
101,418
|
|
|
109,495
|
|
||
Net cash used by operating activities - discontinued operations
|
—
|
|
|
(5,231
|
)
|
||
Net cash provided by operating activities
|
101,418
|
|
|
104,264
|
|
||
|
|
|
|
||||
Cash used by investing activities:
|
|
|
|
|
|
||
Capital and intangible asset expenditures
|
(13,247
|
)
|
|
(22,166
|
)
|
||
Proceeds from the sale of property and equipment
|
3
|
|
|
1,125
|
|
||
Net cash used by investing activities - continuing operations
|
(13,244
|
)
|
|
(21,041
|
)
|
||
Net cash used by investing activities - discontinued operations
|
—
|
|
|
—
|
|
||
Net cash used by investing activities
|
(13,244
|
)
|
|
(21,041
|
)
|
||
|
|
|
|
||||
Cash used by financing activities:
|
|
|
|
|
|
||
Proceeds from line of credit
|
406,600
|
|
|
462,350
|
|
||
Repayment of line of credit
|
(482,000
|
)
|
|
(411,350
|
)
|
||
Repayment of long-term debt
|
(1,900
|
)
|
|
(1,900
|
)
|
||
Proceeds from share issuances under share-based compensation plans
|
7,025
|
|
|
8,490
|
|
||
Payments for repurchases of common stock
|
(10,133
|
)
|
|
(142,415
|
)
|
||
Net cash used by financing activities - continuing operations
|
(80,408
|
)
|
|
(84,825
|
)
|
||
Net cash used by financing activities - discontinued operations
|
—
|
|
|
—
|
|
||
Net cash used by financing activities
|
(80,408
|
)
|
|
(84,825
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
7,766
|
|
|
(1,602
|
)
|
||
Cash and cash equivalents, beginning balance
|
11,871
|
|
|
20,738
|
|
||
Cash and cash equivalents, ending balance
|
19,637
|
|
|
19,136
|
|
||
Less: Cash and cash equivalents of discontinued operations, ending balance
|
—
|
|
|
—
|
|
||
Cash and cash equivalents of continuing operations, ending balance
|
$
|
19,637
|
|
|
$
|
19,136
|
|
|
|
|
|
||||
Supplemental non-cash items not included above resulting from the adoption of ASC 842
|
|
|
|
||||
Initial recognition of operating lease asset
|
$
|
(37,082
|
)
|
|
$
|
—
|
|
Initial recognition of lease liabilities
|
47,223
|
|
|
—
|
|
||
Accrued expenses and other current liabilities
|
(2,873
|
)
|
|
—
|
|
||
Other assets and liabilities, net
|
(7,311
|
)
|
|
—
|
|
||
Prepaid expenses and other current assets
|
43
|
|
|
—
|
|
|
November 30, 2019
|
||
Weighted average remaining lease term (years)
|
10.9
|
|
|
Weighted average discount rate
|
6.11
|
%
|
|
Year-to-date cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
3,310
|
|
|
November 30, 2019
|
||
Lease liabilities, current (1)
|
$
|
3,331
|
|
Lease liabilities, non-current
|
41,760
|
|
|
Total lease liability
|
$
|
45,091
|
|
(in thousands)
|
Estimated
Useful Lives
(Years)
|
|
November 30, 2019
|
|
February 28, 2019
|
||||||
Land
|
|
|
|
|
$
|
12,644
|
|
|
$
|
12,644
|
|
Building and improvements
|
3
|
-
|
40
|
|
113,608
|
|
|
113,820
|
|
||
Computer, software, furniture and other equipment
|
3
|
-
|
15
|
|
86,888
|
|
|
84,711
|
|
||
Tools, molds and other production equipment
|
3
|
-
|
7
|
|
37,756
|
|
|
36,378
|
|
||
Construction in progress
|
|
|
|
|
14,047
|
|
|
6,529
|
|
||
Property and equipment, gross
|
|
|
|
|
264,943
|
|
|
254,082
|
|
||
Less accumulated depreciation
|
|
|
|
|
(133,764
|
)
|
|
(123,744
|
)
|
||
Property and equipment, net
|
|
|
|
|
$
|
131,179
|
|
|
$
|
130,338
|
|
(in thousands)
|
November 30, 2019
|
|
February 28, 2019
|
||||
Accrued compensation, benefits and payroll taxes
|
$
|
37,410
|
|
|
$
|
36,782
|
|
Accrued sales discounts and allowances
|
31,661
|
|
|
28,655
|
|
||
Accrued sales returns
|
24,159
|
|
|
23,316
|
|
||
Accrued advertising
|
30,970
|
|
|
26,549
|
|
||
Other
|
47,069
|
|
|
49,858
|
|
||
Total accrued expenses and other current liabilities
|
$
|
171,269
|
|
|
$
|
165,160
|
|
|
November 30, 2019
|
|
February 28, 2019
|
||||||||||||||||||||||||||||
(in thousands)
|
Gross
Carrying
Amount
|
|
Cumulative
Goodwill
Impairments
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
|
Gross
Carrying
Amount
|
|
Cumulative
Goodwill
Impairments
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
||||||||||||||||
Housewares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
282,056
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
282,056
|
|
|
$
|
282,056
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
282,056
|
|
Trademarks - indefinite
|
134,200
|
|
|
—
|
|
|
—
|
|
|
134,200
|
|
|
134,200
|
|
|
—
|
|
|
—
|
|
|
134,200
|
|
||||||||
Other intangibles - finite
|
41,846
|
|
|
—
|
|
|
(20,881
|
)
|
|
20,965
|
|
|
41,417
|
|
|
—
|
|
|
(19,398
|
)
|
|
22,019
|
|
||||||||
Subtotal
|
458,102
|
|
|
—
|
|
|
(20,881
|
)
|
|
437,221
|
|
|
457,673
|
|
|
—
|
|
|
(19,398
|
)
|
|
438,275
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Health & Home:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
284,913
|
|
|
—
|
|
|
—
|
|
|
284,913
|
|
|
284,913
|
|
|
—
|
|
|
—
|
|
|
284,913
|
|
||||||||
Trademarks - indefinite
|
54,000
|
|
|
—
|
|
|
—
|
|
|
54,000
|
|
|
54,000
|
|
|
—
|
|
|
—
|
|
|
54,000
|
|
||||||||
Licenses - finite
|
17,050
|
|
|
—
|
|
|
(15,665
|
)
|
|
1,385
|
|
|
17,050
|
|
|
—
|
|
|
(15,402
|
)
|
|
1,648
|
|
||||||||
Licenses - indefinite
|
7,400
|
|
|
—
|
|
|
—
|
|
|
7,400
|
|
|
7,400
|
|
|
—
|
|
|
—
|
|
|
7,400
|
|
||||||||
Other intangibles - finite
|
118,139
|
|
|
—
|
|
|
(95,776
|
)
|
|
22,363
|
|
|
117,967
|
|
|
—
|
|
|
(87,953
|
)
|
|
30,014
|
|
||||||||
Subtotal
|
481,502
|
|
|
—
|
|
|
(111,441
|
)
|
|
370,061
|
|
|
481,330
|
|
|
—
|
|
|
(103,355
|
)
|
|
377,975
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beauty:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
81,841
|
|
|
(46,490
|
)
|
|
—
|
|
|
35,351
|
|
|
81,841
|
|
|
(46,490
|
)
|
|
—
|
|
|
35,351
|
|
||||||||
Trademarks - indefinite
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,407
|
|
|
—
|
|
|
—
|
|
|
30,407
|
|
||||||||
Trademarks - finite
|
30,557
|
|
|
—
|
|
|
(3,347
|
)
|
|
27,210
|
|
|
150
|
|
|
—
|
|
|
(102
|
)
|
|
48
|
|
||||||||
Licenses - indefinite
|
10,300
|
|
|
—
|
|
|
—
|
|
|
10,300
|
|
|
10,300
|
|
|
—
|
|
|
—
|
|
|
10,300
|
|
||||||||
Licenses - finite
|
13,696
|
|
|
—
|
|
|
(12,721
|
)
|
|
975
|
|
|
13,696
|
|
|
—
|
|
|
(12,482
|
)
|
|
1,214
|
|
||||||||
Other intangibles - finite
|
46,402
|
|
|
—
|
|
|
(46,172
|
)
|
|
230
|
|
|
46,402
|
|
|
—
|
|
|
(46,126
|
)
|
|
276
|
|
||||||||
Subtotal
|
182,796
|
|
|
(46,490
|
)
|
|
(62,240
|
)
|
|
74,066
|
|
|
182,796
|
|
|
(46,490
|
)
|
|
(58,710
|
)
|
|
77,596
|
|
||||||||
Total
|
$
|
1,122,400
|
|
|
$
|
(46,490
|
)
|
|
$
|
(194,562
|
)
|
|
$
|
881,348
|
|
|
$
|
1,121,799
|
|
|
$
|
(46,490
|
)
|
|
$
|
(181,463
|
)
|
|
$
|
893,846
|
|
Aggregate Amortization Expense
|
|
||
For the three months ended (in thousands)
|
|||
November 30, 2019
|
$
|
4,790
|
|
November 30, 2018
|
3,300
|
|
Aggregate Amortization Expense
|
|
||
For the nine months ended (in thousands)
|
|||
November 30, 2019
|
$
|
13,129
|
|
November 30, 2018
|
10,822
|
|
Estimated Amortization Expense (in thousands)
|
|
||
Fiscal 2020
|
$
|
17,557
|
|
Fiscal 2021
|
16,437
|
|
|
Fiscal 2022
|
9,530
|
|
|
Fiscal 2023
|
9,261
|
|
|
Fiscal 2024
|
7,386
|
|
|
Fiscal 2025
|
6,854
|
|
•
|
We issued 904 and 3,208 shares to non-employee Board members with a total grant date fair value of $0.1 and $0.3 million, respectively, and weighted average share prices of $155.13 and $131.33, respectively.
|
•
|
We granted time-vested restricted stock units ("RSUs") that may be settled for 390 and 3,669 shares of common stock, respectively. The RSU grants have a weighted average grant price of $153.75 and $116.00 per share, respectively, for a total award value at date of grant of $0.1 and $0.4 million, respectively.
|
•
|
We granted time-vested restricted stock awards ("RSAs") that may be settled for 506 and 46,278 shares of common stock, respectively. The RSA grants have a weighted average grant price of $147.61 and $114.35 per share, respectively, for a total award fair value at date of grant of $0.1 million and $5.3 million, respectively.
|
•
|
There were no grants of performance-based stock units ("PSUs") during the three months ended November 30, 2019. For the nine months ended November 30, 2019, we granted PSUs that may be settled for 6,088 shares of common stock at target. The PSU grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $0.7 million.
|
•
|
There were no grants of performance-based restricted stock awards ("PSAs") during the three months ended November 30, 2019. For the nine months ended November 30, 2019, we granted PSAs that are targeted to be settled for 122,402 shares of common stock. The PSA grants have a weighted average grant price of $110.85 per share for a total award fair value at date of grant of $13.6 million.
|
•
|
RSUs for 20,449 and 86,778 shares vested and settled, respectively, with a total fair value at settlement of $3.1 and $10.7 million and a weighted average share price of $153.63 and $123.79, respectively.
|
•
|
There were no PSUs shares that vested and settled during the three months ended November 30, 2019. For the nine months ended November 30, 2019, there were 108,572 shares vested and settled with a total fair value at settlement of $14.7 million, and a weighted average share price of $135.85.
|
•
|
RSAs for 44 shares vested and settled with an immaterial fair value amount and a weighted average share price of $150.86 during the three months ended November 30, 2019. RSAs for 972 shares vested and settled with a fair value amount of $0.1 million and a weighted average share price of $150.86 during the nine month period ended November 30, 2019.
|
•
|
Employees exercised stock options to purchase 6,892 and 68,657 shares of common stock, respectively.
|
•
|
There were 15,013 and 29,803 purchases of common stock under the employee stock purchase plan at an average price of $95.03 and $95.16, respectively.
|
|
Fiscal Years Ended the Last Day of February:
|
||||||||||||||||||||
|
|
2020
|
2021
|
2022
|
2023
|
2024
|
After
|
||||||||||||||
(in thousands)
|
Total
|
1 year
|
2 years
|
3 years
|
4 years
|
5 years
|
5 years
|
||||||||||||||
Operating leases
|
$
|
69,482
|
|
$
|
5,171
|
|
$
|
6,678
|
|
$
|
6,411
|
|
$
|
5,743
|
|
$
|
5,078
|
|
$
|
40,401
|
|
(in thousands)
|
November 30, 2019
|
February 28, 2019
|
||||
Mississippi Business Finance Corporation Loan (the "MBFC Loan") (1)
|
$
|
20,447
|
|
$
|
22,335
|
|
Credit Agreement (2)
|
223,800
|
|
298,449
|
|
||
Total long-term debt
|
244,247
|
|
320,784
|
|
||
Less current maturities of long-term debt
|
(1,884
|
)
|
(1,884
|
)
|
||
Long-term debt, excluding current maturities
|
$
|
242,363
|
|
$
|
318,900
|
|
(1)
|
The MBFC Loan is unsecured and bears floating interest based on applicable LIBOR plus a margin of up to 2.0%, or a Base Rate plus a margin of up to 1.0%, as determined by the interest rate elected and the leverage ratio defined in the loan agreement. Since March 2018, the loan may be called by the holder at anytime. The loan can be prepaid without penalty. The remaining principal balance is payable as follows: $1.9 million annually on March 1, 2020 through 2022; and $14.8 million on March 1, 2023. Any remaining outstanding principal and interest is due upon maturity on March 1, 2023.
|
(2)
|
The Credit Agreement matures on December 7, 2021. The Credit Agreement's floating interest rates are hedged with interest rate swaps to effectively fix interest rates on $225 million of the outstanding principal balance under the Credit Agreement. Notes 13 and 14 to these condensed consolidated financial statements provide additional information regarding the interest rate swaps.
|
Level 1:
|
Observable inputs such as quoted prices for identical assets or liabilities in active markets;
|
Level 2:
|
Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and
|
Level 3:
|
Unobservable inputs that reflect the reporting entity’s own assumptions.
|
|
Fair Values at
|
||
|
November 30, 2019
|
||
(in thousands)
|
(Level 2) (1)
|
||
Assets:
|
|
|
|
Money market accounts
|
$
|
653
|
|
Interest rate swaps
|
—
|
|
|
Foreign currency contracts
|
1,353
|
|
|
Total assets
|
$
|
2,006
|
|
|
|
|
|
Liabilities:
|
|
|
|
Floating rate debt
|
$
|
244,247
|
|
Interest rate swaps
|
7,068
|
|
|
Foreign currency contracts
|
372
|
|
|
Total liabilities
|
$
|
251,687
|
|
|
Fair Values at
|
||
|
February 28, 2019
|
||
(in thousands)
|
(Level 2) (1)
|
||
Assets:
|
|
|
|
Money market accounts
|
$
|
915
|
|
Interest rate swaps
|
512
|
|
|
Foreign currency contracts
|
1,692
|
|
|
Total assets
|
$
|
3,119
|
|
|
|
|
|
Liabilities:
|
|
|
|
Floating rate debt
|
$
|
320,784
|
|
Interest rate swaps
|
339
|
|
|
Foreign currency contracts
|
563
|
|
|
Total liabilities
|
$
|
321,686
|
|
(1)
|
Our financial assets and liabilities are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable.
|
(in thousands)
|
November 30, 2019
|
||||||||||||||||
Derivatives designated as hedging instruments
|
Hedge
Type
|
Final
Settlement Date
|
Notional Amount
|
Prepaid
Expenses
and Other
Current Assets
|
Other Assets
|
Accrued
Expenses
and Other
Current Liabilities
|
Other
Liabilities, Non- current
|
||||||||||
Zero-cost collar - Euro
|
Cash flow
|
02/2021
|
€
|
14,000
|
|
$
|
134
|
|
$
|
13
|
|
$
|
—
|
|
$
|
—
|
|
Foreign currency contracts - sell Euro
|
Cash flow
|
2/2021
|
€
|
22,375
|
|
431
|
|
119
|
|
—
|
|
—
|
|
||||
Foreign currency contracts - sell Canadian Dollars
|
Cash flow
|
01/2021
|
$
|
15,500
|
|
82
|
|
5
|
|
—
|
|
—
|
|
||||
Zero-cost collar - Pound
|
Cash flow
|
02/2021
|
£
|
9,500
|
|
—
|
|
—
|
|
185
|
|
89
|
|
||||
Foreign currency contracts - sell Pound
|
Cash flow
|
02/2020
|
£
|
15,500
|
|
148
|
|
—
|
|
—
|
|
8
|
|
||||
Foreign currency contracts - sell Mexican Pesos
|
Cash flow
|
02/2020
|
$
|
20,000
|
|
—
|
|
—
|
|
15
|
|
—
|
|
||||
Interest rate swaps
|
Cash flow
|
1/2024
|
$
|
225,000
|
|
—
|
|
—
|
|
2,058
|
|
5,010
|
|
||||
Subtotal
|
|
|
|
795
|
|
137
|
|
2,258
|
|
5,107
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated under hedge accounting
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency contracts - cross-currency debt swaps - Euro
|
(1)
|
04/2020
|
€
|
5,280
|
|
421
|
|
—
|
|
—
|
|
—
|
|
||||
Foreign currency contracts - cross-currency debt swaps - Pound
|
(1)
|
04/2020
|
£
|
6,395
|
|
—
|
|
—
|
|
75
|
|
—
|
|
||||
Subtotal
|
|
|
|
421
|
|
—
|
|
75
|
|
—
|
|
||||||
Total fair value
|
|
|
|
$
|
1,216
|
|
$
|
137
|
|
$
|
2,333
|
|
$
|
5,107
|
|
(in thousands)
|
February 28, 2019
|
||||||||||||||||
Derivatives designated as hedging instruments
|
Hedge Type
|
Final
Settlement Date |
Notional Amount
|
Prepaid
Expenses and Other Current Assets |
Other Assets
|
Accrued
Expenses and Other Current Liabilities |
Other
Liabilities, Non- current |
||||||||||
Zero-cost collar - Euro
|
Cash flow
|
02/2020
|
€
|
9,500
|
|
$
|
11
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Foreign currency contracts - sell Euro
|
Cash flow
|
01/2020
|
€
|
29,000
|
|
1,047
|
|
—
|
|
—
|
|
—
|
|
||||
Foreign currency contracts - sell Canadian Dollars
|
Cash flow
|
02/2020
|
$
|
16,000
|
|
168
|
|
—
|
|
—
|
|
—
|
|
||||
Zero-cost collar - Pound
|
Cash flow
|
05/2020
|
£
|
4,500
|
|
—
|
|
—
|
|
200
|
|
—
|
|
||||
Foreign currency contracts - sell Pound
|
Cash flow
|
05/2020
|
£
|
19,500
|
|
248
|
|
—
|
|
—
|
|
13
|
|
||||
Foreign currency contracts - sell Mexican Pesos
|
Cash flow
|
09/2019
|
$
|
30,000
|
|
—
|
|
—
|
|
58
|
|
—
|
|
||||
Interest rate swaps
|
Cash flow
|
01/2024
|
$
|
225,000
|
|
512
|
|
—
|
|
—
|
|
339
|
|
||||
Subtotal
|
|
|
|
1,986
|
|
—
|
|
258
|
|
352
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||
Derivatives not designated under hedge accounting
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency contracts - cross-currency debt swaps - Euro
|
(1)
|
04/2020
|
€
|
5,280
|
|
—
|
|
218
|
|
—
|
|
—
|
|
||||
Foreign currency contracts - cross-currency debt swaps - Pound
|
(1)
|
04/2020
|
£
|
6,395
|
|
—
|
|
—
|
|
—
|
|
292
|
|
||||
Subtotal
|
|
|
|
—
|
|
218
|
|
—
|
|
292
|
|
||||||
Total fair value
|
|
|
|
$
|
1,986
|
|
$
|
218
|
|
$
|
258
|
|
$
|
644
|
|
(1)
|
These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements.
|
|
Three Months Ended November 30,
|
||||||||||||||||||||||||||
|
Gain (Loss)
Recognized in OCI
(effective portion)
|
|
Gain (Loss) Reclassified from
Accumulated Other Comprehensive
Income (Loss) into Income
|
|
Gain (Loss) Recognized
As Income
|
||||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Location
|
|
2019
|
|
2018
|
|
Location
|
|
2019
|
|
2018
|
||||||||||||
Currency contracts - cash flow hedges
|
$
|
(2,739
|
)
|
|
$
|
(563
|
)
|
|
SG&A
|
|
$
|
(630
|
)
|
|
$
|
(1,178
|
)
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate swaps - cash flow hedges
|
2,084
|
|
|
(4
|
)
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
Interest expense
|
|
(162
|
)
|
|
136
|
|
||||||
Cross-currency debt swaps - principal
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
SG&A
|
|
(389
|
)
|
|
228
|
|
||||||
Cross-currency debt swaps - interest
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
Interest Expense
|
|
73
|
|
|
73
|
|
||||||
Total
|
$
|
(655
|
)
|
|
$
|
(567
|
)
|
|
|
|
$
|
(630
|
)
|
|
$
|
(1,178
|
)
|
|
|
|
$
|
(478
|
)
|
|
$
|
437
|
|
|
Nine Months Ended November 30,
|
||||||||||||||||||||||||||
|
Gain (Loss)
Recognized in OCI
(effective portion)
|
|
Gain (Loss) Reclassified from
Accumulated Other Comprehensive
Income (Loss) into Income
|
|
Gain (Loss) Recognized
As Income
|
||||||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
Location
|
|
2019
|
|
2018
|
|
Location
|
|
2019
|
|
2018
|
||||||||||||
Currency contracts - cash flow hedges
|
$
|
(3,407
|
)
|
|
$
|
3,962
|
|
|
SG&A
|
|
$
|
(2,840
|
)
|
|
$
|
(1,101
|
)
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate swaps - cash flow hedges
|
(7,242
|
)
|
|
72
|
|
|
Interest expense
|
|
—
|
|
|
—
|
|
|
Interest expense
|
|
69
|
|
|
347
|
|
||||||
Cross-currency debt swaps - principal
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
SG&A
|
|
419
|
|
|
894
|
|
||||||
Cross-currency debt swaps - interest
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
Interest expense
|
|
147
|
|
|
147
|
|
||||||
Total
|
$
|
(10,649
|
)
|
|
$
|
4,034
|
|
|
|
|
$
|
(2,840
|
)
|
|
$
|
(1,101
|
)
|
|
|
|
$
|
635
|
|
|
$
|
1,388
|
|
(in thousands)
|
|
Interest
Rate Swaps
|
|
Foreign
Currency
Contracts
|
|
Total
|
||||||
Balance at February 28, 2018
|
|
$
|
1,705
|
|
|
$
|
(1,074
|
)
|
|
$
|
631
|
|
Other comprehensive income (loss) before reclassification
|
|
72
|
|
|
3,962
|
|
|
4,034
|
|
|||
Amounts reclassified out of accumulated other comprehensive income
|
|
—
|
|
|
1,101
|
|
|
1,101
|
|
|||
Tax effects
|
|
179
|
|
|
(738
|
)
|
|
(559
|
)
|
|||
Other comprehensive income (loss)
|
|
251
|
|
|
4,325
|
|
|
4,576
|
|
|||
Balance at November 30, 2018
|
|
$
|
1,956
|
|
|
$
|
3,251
|
|
|
$
|
5,207
|
|
|
|
|
|
|
|
|
||||||
Balance at February 28, 2019
|
|
$
|
132
|
|
|
$
|
1,059
|
|
|
$
|
1,191
|
|
Other comprehensive income (loss) before reclassification
|
|
(7,242
|
)
|
|
(3,407
|
)
|
|
(10,649
|
)
|
|||
Amounts reclassified out of accumulated other comprehensive income
|
|
—
|
|
|
2,840
|
|
|
2,840
|
|
|||
Tax effects
|
|
1,680
|
|
|
53
|
|
|
1,733
|
|
|||
Other comprehensive income (loss)
|
|
(5,562
|
)
|
|
(514
|
)
|
|
(6,076
|
)
|
|||
Balance at November 30, 2019
|
|
$
|
(5,430
|
)
|
|
$
|
545
|
|
|
$
|
(4,885
|
)
|
|
Three Months Ended November 30, 2019
|
||||||||||||||
(in thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||
Sales revenue, net
|
$
|
183,211
|
|
|
$
|
185,810
|
|
|
$
|
105,716
|
|
|
$
|
474,737
|
|
Restructuring charges
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||
Operating income
|
42,272
|
|
|
24,372
|
|
|
12,625
|
|
|
79,269
|
|
||||
Capital and intangible asset expenditures
|
2,272
|
|
|
1,917
|
|
|
197
|
|
|
4,386
|
|
||||
Depreciation and amortization
|
2,263
|
|
|
3,740
|
|
|
2,757
|
|
|
8,760
|
|
|
Three Months Ended November 30, 2018
|
||||||||||||||
(in thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||
Sales revenue, net
|
$
|
142,937
|
|
|
$
|
187,863
|
|
|
$
|
100,281
|
|
|
$
|
431,081
|
|
Restructuring charges
|
(20
|
)
|
|
—
|
|
|
45
|
|
|
25
|
|
||||
Operating income
|
29,839
|
|
|
19,213
|
|
|
12,244
|
|
|
61,296
|
|
||||
Capital and intangible asset expenditures
|
5,534
|
|
|
3,128
|
|
|
443
|
|
|
9,105
|
|
||||
Depreciation and amortization
|
1,408
|
|
|
4,326
|
|
|
1,461
|
|
|
7,195
|
|
|
Nine Months Ended November 30, 2019
|
||||||||||||||
(in thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||
Sales revenue, net
|
$
|
496,017
|
|
|
$
|
499,543
|
|
|
$
|
269,507
|
|
|
$
|
1,265,067
|
|
Restructuring charges
|
90
|
|
|
—
|
|
|
971
|
|
|
1,061
|
|
||||
Operating income
|
109,170
|
|
|
51,836
|
|
|
19,990
|
|
|
180,996
|
|
||||
Capital and intangible asset expenditures
|
8,354
|
|
|
4,115
|
|
|
778
|
|
|
13,247
|
|
||||
Depreciation and amortization
|
5,292
|
|
|
12,322
|
|
|
7,262
|
|
|
24,876
|
|
|
Nine Months Ended November 30, 2018
|
||||||||||||||
(in thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||
Sales revenue, net
|
$
|
397,738
|
|
|
$
|
527,077
|
|
|
$
|
254,493
|
|
|
$
|
1,179,308
|
|
Restructuring charges
|
740
|
|
|
358
|
|
|
1,511
|
|
|
2,609
|
|
||||
Operating income
|
80,351
|
|
|
52,501
|
|
|
22,431
|
|
|
155,283
|
|
||||
Capital and intangible asset expenditures
|
12,830
|
|
|
7,783
|
|
|
1,553
|
|
|
22,166
|
|
||||
Depreciation and amortization
|
4,414
|
|
|
12,703
|
|
|
5,373
|
|
|
22,490
|
|
|
Three Months Ended
November 30, |
|
Nine Months Ended
November 30, |
||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Weighted average shares outstanding, basic
|
25,161
|
|
|
26,057
|
|
|
25,099
|
|
|
26,321
|
|
Incremental shares from share-based compensation arrangements
|
235
|
|
|
309
|
|
|
196
|
|
|
199
|
|
Weighted average shares outstanding, diluted
|
25,396
|
|
|
26,366
|
|
|
25,295
|
|
|
26,520
|
|
|
|
|
|
|
|
|
|
||||
Anti-dilutive securities
|
134
|
|
|
137
|
|
|
217
|
|
|
281
|
|
|
Three Months Ended November 30,
|
|
|
|
|
|
% of Sales Revenue, net
|
|||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|||||||||
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Housewares
|
$
|
183,211
|
|
|
$
|
142,937
|
|
|
$
|
40,274
|
|
|
28.2
|
%
|
|
38.6
|
%
|
|
33.2
|
%
|
Health & Home
|
185,810
|
|
|
187,863
|
|
|
(2,053
|
)
|
|
(1.1
|
)%
|
|
39.1
|
%
|
|
43.6
|
%
|
|||
Beauty
|
105,716
|
|
|
100,281
|
|
|
5,435
|
|
|
5.4
|
%
|
|
22.3
|
%
|
|
23.3
|
%
|
|||
Total sales revenue, net
|
474,737
|
|
|
431,081
|
|
|
43,656
|
|
|
10.1
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|||
Cost of goods sold
|
264,764
|
|
|
249,236
|
|
|
15,528
|
|
|
6.2
|
%
|
|
55.8
|
%
|
|
57.8
|
%
|
|||
Gross profit
|
209,973
|
|
|
181,845
|
|
|
28,128
|
|
|
15.5
|
%
|
|
44.2
|
%
|
|
42.2
|
%
|
|||
Selling, general and administrative expense ("SG&A")
|
130,692
|
|
|
120,524
|
|
|
10,168
|
|
|
8.4
|
%
|
|
27.5
|
%
|
|
28.0
|
%
|
|||
Restructuring charges
|
12
|
|
|
25
|
|
|
(13
|
)
|
|
(52.0
|
)%
|
|
—
|
%
|
|
—
|
%
|
|||
Operating income
|
79,269
|
|
|
61,296
|
|
|
17,973
|
|
|
29.3
|
%
|
|
16.7
|
%
|
|
14.2
|
%
|
|||
Non-operating income, net
|
92
|
|
|
15
|
|
|
77
|
|
|
*
|
|
|
—
|
%
|
|
—
|
%
|
|||
Interest expense
|
(2,767
|
)
|
|
(2,971
|
)
|
|
204
|
|
|
(6.9
|
)%
|
|
(0.6
|
)%
|
|
(0.7
|
)%
|
|||
Income before income tax
|
76,594
|
|
|
58,340
|
|
|
18,254
|
|
|
31.3
|
%
|
|
16.1
|
%
|
|
13.5
|
%
|
|||
Income tax expense
|
7,895
|
|
|
4,020
|
|
|
3,875
|
|
|
96.4
|
%
|
|
1.7
|
%
|
|
0.9
|
%
|
|||
Income from continuing operations
|
68,699
|
|
|
54,320
|
|
|
14,379
|
|
|
26.5
|
%
|
|
14.5
|
%
|
|
12.6
|
%
|
|||
Loss from discontinued operations (1)
|
—
|
|
|
(4,850
|
)
|
|
4,850
|
|
|
*
|
|
|
—
|
%
|
|
(1.1
|
)%
|
|||
Net income
|
$
|
68,699
|
|
|
$
|
49,470
|
|
|
$
|
19,229
|
|
|
38.9
|
%
|
|
14.5
|
%
|
|
11.5
|
%
|
|
Nine Months Ended November 30,
|
|
|
|
|
|
% of Sales Revenue, net
|
|||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|||||||||
Sales revenue by segment, net
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Housewares
|
$
|
496,017
|
|
|
$
|
397,738
|
|
|
$
|
98,279
|
|
|
24.7
|
%
|
|
39.2
|
%
|
|
33.7
|
%
|
Health & Home
|
499,543
|
|
|
527,077
|
|
|
(27,534
|
)
|
|
(5.2
|
)%
|
|
39.5
|
%
|
|
44.7
|
%
|
|||
Beauty
|
269,507
|
|
|
254,493
|
|
|
15,014
|
|
|
5.9
|
%
|
|
21.3
|
%
|
|
21.6
|
%
|
|||
Total sales revenue, net
|
1,265,067
|
|
|
1,179,308
|
|
|
85,759
|
|
|
7.3
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|||
Cost of goods sold
|
723,216
|
|
|
695,732
|
|
|
27,484
|
|
|
4.0
|
%
|
|
57.2
|
%
|
|
59.0
|
%
|
|||
Gross profit
|
541,851
|
|
|
483,576
|
|
|
58,275
|
|
|
12.1
|
%
|
|
42.8
|
%
|
|
41.0
|
%
|
|||
SG&A
|
359,794
|
|
|
325,684
|
|
|
34,110
|
|
|
10.5
|
%
|
|
28.4
|
%
|
|
27.6
|
%
|
|||
Restructuring charges
|
1,061
|
|
|
2,609
|
|
|
(1,548
|
)
|
|
(59.3
|
)%
|
|
0.1
|
%
|
|
0.2
|
%
|
|||
Operating income
|
180,996
|
|
|
155,283
|
|
|
25,713
|
|
|
16.6
|
%
|
|
14.3
|
%
|
|
13.2
|
%
|
|||
Non-operating income, net
|
313
|
|
|
175
|
|
|
138
|
|
|
78.9
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Interest expense
|
(9,291
|
)
|
|
(8,413
|
)
|
|
(878
|
)
|
|
10.4
|
%
|
|
(0.7
|
)%
|
|
(0.7
|
)%
|
|||
Income before income tax
|
172,018
|
|
|
147,045
|
|
|
24,973
|
|
|
17.0
|
%
|
|
13.6
|
%
|
|
12.5
|
%
|
|||
Income tax expense
|
16,530
|
|
|
10,535
|
|
|
5,995
|
|
|
56.9
|
%
|
|
1.3
|
%
|
|
0.9
|
%
|
|||
Income from continuing operations
|
155,488
|
|
|
136,510
|
|
|
18,978
|
|
|
13.9
|
%
|
|
12.3
|
%
|
|
11.6
|
%
|
|||
Loss from discontinued operations (1)
|
—
|
|
|
(5,231
|
)
|
|
5,231
|
|
|
*
|
|
|
—
|
%
|
|
(0.4
|
)%
|
|||
Net income
|
$
|
155,488
|
|
|
$
|
131,279
|
|
|
$
|
24,209
|
|
|
18.4
|
%
|
|
12.3
|
%
|
|
11.1
|
%
|
(1)
|
During fiscal 2018, we divested our Nutritional Supplements segment, which is reported as discontinued operations for all periods presented. For more information see Note 5 to the accompanying condensed consolidated financial statements.
|
•
|
Consolidated net sales revenue increased 10.1%, or $43.7 million, to $474.7 million for the three months ended November 30, 2019, compared to $431.1 million for the same period last year.
|
•
|
Consolidated operating income increased 29.3%, or $18.0 million, to $79.3 million for the three months ended November 30, 2019, compared to $61.3 million for the same period last year. Consolidated operating margin increased 2.5 percentage points to 16.7% of consolidated net sales revenue for the three months ended November 30, 2019, compared to 14.2% for the same period last year. The three months ended November 30, 2019 included pre-tax acquisition-related expenses of $1.5 million with no comparative expenses for the same period last year.
|
•
|
Consolidated adjusted operating income increased 27.8%, or $19.7 million, to $90.3 million for the three months ended November 30, 2019, compared to $70.6 million for the same period last year. Consolidated adjusted operating margin increased 2.6 percentage points to 19.0% of consolidated net sales revenue for the three months ended November 30, 2019, compared to 16.4% for the same period last year.
|
•
|
Income from continuing operations increased 26.5%, or $14.4 million, to $68.7 million for the three months ended November 30, 2019, compared to $54.3 million for the same period last year. Diluted EPS from continuing operations increased 31.6% to $2.71 for the three months ended November 30, 2019, compared to $2.06 for the same period last year.
|
•
|
Adjusted income from continuing operations increased 25.2%, or $15.9 million, to $79.1 million for the three months ended November 30, 2019, compared to $63.2 million for the same period last year. Adjusted diluted EPS from continuing operations increased 30.0% to $3.12 for the three months ended November 30, 2019, compared to $2.40 for the same period last year.
|
•
|
There were no results from discontinued operations for the three months ended November 30, 2019, compared to a loss from discontinued operations of $4.9 million, or $0.18 per diluted share, for the three months ended November 30, 2018.
|
•
|
Net income increased 38.9%, or $19.2 million, to $68.7 million for the three months ended November 30, 2019 compared to $49.5 million for the same period last year. Diluted EPS increased 44.1% to $2.71 for the three months ended November 30, 2019 compared to $1.88 for the same period last year.
|
•
|
Consolidated net sales revenue increased 7.3%, or $85.8 million, to $1,265.1 million for the nine months ended November 30, 2019, compared to $1,179.3 million for the same period last year.
|
•
|
Consolidated operating income increased 16.6%, or $25.7 million, to $181.0 million for the nine months ended November 30, 2019, compared to $155.3 million for the same period last year. Consolidated operating margin increased 1.1 percentage points to 14.3% of consolidated net sales revenue for the nine months ended November 30, 2019, compared to 13.2% for the same period last year. The nine months ended November 30, 2019 included pre-tax acquisition-related expenses and pre-tax restructuring charges of $1.5 million and $1.1 million, respectively, compared to zero pre-tax acquisition-related expenses and pre-tax restructuring charges of $2.6 million for the same period last year.
|
•
|
Consolidated adjusted operating income increased 16.0%, or $29.7 million, to $215.4 million for the nine months ended November 30, 2019, compared to $185.7 million for the same period last year. Consolidated adjusted operating margin increased 1.2 percentage points to 17.0% of consolidated net sales revenue for the nine months ended November 30, 2019, compared to 15.8% for the same period last year.
|
•
|
Income from continuing operations increased 13.9%, or $19.0 million, to $155.5 million for the nine months ended November 30, 2019, compared to $136.5 million for the same period last year. Diluted EPS from continuing operations increased 19.4% to $6.15 for the nine months ended November 30, 2019, compared to $5.15 for the same period last year.
|
•
|
Adjusted income from continuing operations increased 13.4%, or $22.2 million, to $187.8 million for the nine months ended November 30, 2019, compared to $165.5 million for the same period last year. Adjusted diluted EPS from continuing operations increased 18.9% to $7.42 for the nine months ended November 30, 2019, compared to $6.24 for the same period last year.
|
•
|
There were no results from discontinued operations for the nine months ended November 30, 2019, compared to a loss from discontinued operations, net of tax of $5.2 million, or $0.20 per diluted share for the same period last year.
|
•
|
Net income increased 18.4%, or $24.2 million, to $155.5 million for the nine months ended November 30, 2019, compared to $131.3 million for the same period last year. Diluted EPS increased 24.2%, to $6.15 for the nine months ended November 30, 2019, compared to $4.95 for the same period last year.
|
|
Three Months Ended November 30,
|
||||||||||||||
(in thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||
Fiscal 2019 sales revenue, net
|
$
|
142,937
|
|
|
$
|
187,863
|
|
|
$
|
100,281
|
|
|
$
|
431,081
|
|
Core business growth (decline)
|
40,768
|
|
|
(996
|
)
|
|
6,232
|
|
|
46,004
|
|
||||
Impact of foreign currency
|
(494
|
)
|
|
(1,057
|
)
|
|
(797
|
)
|
|
(2,348
|
)
|
||||
Change in sales revenue, net
|
40,274
|
|
|
(2,053
|
)
|
|
5,435
|
|
|
43,656
|
|
||||
Fiscal 2020 sales revenue, net
|
$
|
183,211
|
|
|
$
|
185,810
|
|
|
$
|
105,716
|
|
|
$
|
474,737
|
|
|
|
|
|
|
|
|
|
||||||||
Total net sales revenue growth (decline)
|
28.2
|
%
|
|
(1.1
|
)%
|
|
5.4
|
%
|
|
10.1
|
%
|
||||
Core business growth (decline)
|
28.5
|
%
|
|
(0.5
|
)%
|
|
6.2
|
%
|
|
10.7
|
%
|
||||
Impact of foreign currency
|
(0.3
|
)%
|
|
(0.6
|
)%
|
|
(0.8
|
)%
|
|
(0.5
|
)%
|
|
Three Months Ended November 30,
|
|||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Leadership Brand sales revenue, net
|
$
|
379,604
|
|
|
$
|
343,364
|
|
|
$
|
36,240
|
|
|
10.6
|
%
|
All other sales revenue, net
|
95,133
|
|
|
87,717
|
|
|
7,416
|
|
|
8.5
|
%
|
|||
Total sales revenue, net
|
$
|
474,737
|
|
|
$
|
431,081
|
|
|
$
|
43,656
|
|
|
10.1
|
%
|
|
Nine Months Ended November 30,
|
|||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Leadership Brand sales revenue, net
|
$
|
1,012,346
|
|
|
$
|
943,168
|
|
|
$
|
69,178
|
|
|
7.3
|
%
|
All other sales revenue, net
|
252,721
|
|
|
236,140
|
|
|
16,581
|
|
|
7.0
|
%
|
|||
Total sales revenue, net
|
$
|
1,265,067
|
|
|
$
|
1,179,308
|
|
|
$
|
85,759
|
|
|
7.3
|
%
|
•
|
growth in consolidated online sales;
|
•
|
an increase in brick and mortar sales in our Housewares segment;
|
•
|
higher international sales; and
|
•
|
an increase in sales in the appliance category in the Beauty segment.
|
•
|
lower sales in our Health & Home segment;
|
•
|
the unfavorable impact from foreign currency fluctuations of approximately $2.3 million, or 0.5%; and
|
•
|
a decline in the personal care category in the Beauty segment.
|
•
|
growth in consolidated online sales;
|
•
|
an increase in brick and mortar sales in our Housewares segment; and
|
•
|
an increase in sales in the appliance category in the Beauty segment.
|
•
|
lower sales in our Health & Home segment;
|
•
|
a decline in the personal care category within the Beauty segment; and
|
•
|
the unfavorable impact from net foreign currency fluctuations of approximately $6.8 million, or 0.6%.
|
•
|
point of sale growth with existing domestic brick and mortar customers;
|
•
|
an increase in online sales;
|
•
|
an increase in international sales;
|
•
|
higher club sales; and
|
•
|
new product introductions.
|
•
|
point of sale growth and incremental distribution with existing domestic brick and mortar customers;
|
•
|
an increase in online sales;
|
•
|
higher club and closeout sales; and
|
•
|
new product introductions.
|
•
|
lower domestic sales driven by net distribution changes year-over-year, the unfavorable comparative impacts of a strong cough/cold/flu season and more wildfire activity in the same period last year; and
|
•
|
lower international sales.
|
•
|
increased demand and new product introductions in the appliance category;
|
•
|
growth in the online channel; and
|
•
|
an increase in international sales.
|
•
|
increased demand and new product introductions in the appliance category;
|
•
|
growth in the online channel; and
|
•
|
an increase in international sales.
|
•
|
a higher mix of Housewares sales at a higher overall gross profit margin; and
|
•
|
a favorable product and channel mix within the Housewares segment.
|
•
|
a higher mix of Housewares sales at a higher overall gross profit margin;
|
•
|
a favorable product mix within the Housewares segment;
|
•
|
a lower mix of shipments made on a direct import basis; and
|
•
|
tariff exclusion refunds received for certain duties expensed in the second half of fiscal 2019 and the first quarter of fiscal 2020.
|
•
|
the net margin dilutive impact from tariffs and related pricing actions;
|
•
|
unfavorable foreign currency fluctuations;
|
•
|
a lower mix of personal care sales in the Beauty segment; and
|
•
|
higher inbound freight expense.
|
•
|
lower advertising expense;
|
•
|
the impact from tariff related pricing actions taken with retail customers;
|
•
|
the impact that higher overall sales had on net operating leverage; and
|
•
|
the favorable impact of foreign currency exchange and forward contract settlements.
|
•
|
higher annual incentive compensation expense;
|
•
|
acquisition-related expenses associated with the definitive agreement to acquire Drybar Products LLC;
|
•
|
higher amortization expense; and
|
•
|
higher freight and distribution expense.
|
•
|
higher annual incentive compensation expense;
|
•
|
the unfavorable impact of a lower mix of shipments made on a direct import basis;
|
•
|
acquisition-related expenses;
|
•
|
higher freight and distribution expense; and
|
|
Three Months Ended November 30, 2019
|
||||||||||||||||||||||||||
(In thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||||||||||||||
Operating income, as reported (GAAP)
|
$
|
42,272
|
|
|
23.1
|
%
|
|
$
|
24,372
|
|
|
13.1
|
%
|
|
$
|
12,625
|
|
|
11.9
|
%
|
|
$
|
79,269
|
|
|
16.7
|
%
|
Acquisition-related expenses
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
1,475
|
|
|
1.4
|
%
|
|
1,475
|
|
|
0.3
|
%
|
||||
Restructuring charges
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
12
|
|
|
—
|
%
|
|
12
|
|
|
—
|
%
|
||||
Subtotal
|
42,272
|
|
|
23.1
|
%
|
|
24,372
|
|
|
13.1
|
%
|
|
14,112
|
|
|
13.3
|
%
|
|
80,756
|
|
|
17.0
|
%
|
||||
Amortization of intangible assets
|
815
|
|
|
0.4
|
%
|
|
2,492
|
|
|
1.3
|
%
|
|
1,483
|
|
|
1.4
|
%
|
|
4,790
|
|
|
1.0
|
%
|
||||
Non-cash share-based compensation
|
1,510
|
|
|
0.8
|
%
|
|
1,946
|
|
|
1.0
|
%
|
|
1,302
|
|
|
1.2
|
%
|
|
4,758
|
|
|
1.0
|
%
|
||||
Adjusted operating income (non-GAAP)
|
44,597
|
|
|
24.3
|
%
|
|
28,810
|
|
|
15.5
|
%
|
|
16,897
|
|
|
16.0
|
%
|
|
90,304
|
|
|
19.0
|
%
|
|
Three Months Ended November 30, 2018
|
||||||||||||||||||||||||||
(In thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||||||||||||||
Operating income, as reported (GAAP)
|
$
|
29,839
|
|
|
20.9
|
%
|
|
$
|
19,213
|
|
|
10.2
|
%
|
|
$
|
12,244
|
|
|
12.2
|
%
|
|
$
|
61,296
|
|
|
14.2
|
%
|
Restructuring charges
|
(20
|
)
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
45
|
|
|
—
|
%
|
|
25
|
|
|
—
|
%
|
||||
Subtotal
|
29,819
|
|
|
20.9
|
%
|
|
19,213
|
|
|
10.2
|
%
|
|
12,289
|
|
|
12.3
|
%
|
|
61,321
|
|
|
14.2
|
%
|
||||
Amortization of intangible assets
|
489
|
|
|
0.3
|
%
|
|
2,721
|
|
|
1.4
|
%
|
|
90
|
|
|
0.1
|
%
|
|
3,300
|
|
|
0.8
|
%
|
||||
Non-cash share-based compensation
|
2,293
|
|
|
1.6
|
%
|
|
2,548
|
|
|
1.4
|
%
|
|
1,175
|
|
|
1.2
|
%
|
|
6,016
|
|
|
1.4
|
%
|
||||
Adjusted operating income (non-GAAP)
|
32,601
|
|
|
22.8
|
%
|
|
24,482
|
|
|
13.0
|
%
|
|
13,554
|
|
|
13.5
|
%
|
|
70,637
|
|
|
16.4
|
%
|
|
Nine Months Ended November 30, 2019
|
||||||||||||||||||||||||||
(In thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||||||||||||||
Operating income, as reported (GAAP)
|
$
|
109,170
|
|
|
22.0
|
%
|
|
$
|
51,836
|
|
|
10.4
|
%
|
|
$
|
19,990
|
|
|
7.4
|
%
|
|
$
|
180,996
|
|
|
14.3
|
%
|
Acquisition-related expenses
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
1,475
|
|
|
0.5
|
%
|
|
1,475
|
|
|
0.1
|
%
|
||||
Restructuring charges
|
90
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
971
|
|
|
0.4
|
%
|
|
1,061
|
|
|
0.1
|
%
|
||||
Subtotal
|
109,260
|
|
|
22.0
|
%
|
|
51,836
|
|
|
10.4
|
%
|
|
22,436
|
|
|
8.3
|
%
|
|
183,532
|
|
|
14.5
|
%
|
||||
Amortization of intangible assets
|
1,512
|
|
|
0.3
|
%
|
|
8,088
|
|
|
1.6
|
%
|
|
3,529
|
|
|
1.3
|
%
|
|
13,129
|
|
|
1.0
|
%
|
||||
Non-cash share-based compensation
|
5,853
|
|
|
1.2
|
%
|
|
7,839
|
|
|
1.6
|
%
|
|
5,051
|
|
|
1.9
|
%
|
|
18,743
|
|
|
1.5
|
%
|
||||
Adjusted operating income (non-GAAP)
|
$
|
116,625
|
|
|
23.5
|
%
|
|
$
|
67,763
|
|
|
13.6
|
%
|
|
$
|
31,016
|
|
|
11.5
|
%
|
|
$
|
215,404
|
|
|
17.0
|
%
|
|
Nine Months Ended November 30, 2018
|
||||||||||||||||||||||||||
(In thousands)
|
Housewares
|
|
Health & Home
|
|
Beauty
|
|
Total
|
||||||||||||||||||||
Operating income, as reported (GAAP)
|
$
|
80,351
|
|
|
20.2
|
%
|
|
$
|
52,501
|
|
|
10.0
|
%
|
|
$
|
22,431
|
|
|
8.8
|
%
|
|
$
|
155,283
|
|
|
13.2
|
%
|
Restructuring charges
|
740
|
|
|
0.2
|
%
|
|
358
|
|
|
0.1
|
%
|
|
1,511
|
|
|
0.6
|
%
|
|
2,609
|
|
|
0.2
|
%
|
||||
Subtotal
|
81,091
|
|
|
20.4
|
%
|
|
52,859
|
|
|
10.0
|
%
|
|
23,942
|
|
|
9.4
|
%
|
|
157,892
|
|
|
13.4
|
%
|
||||
Amortization of intangible assets
|
1,474
|
|
|
0.4
|
%
|
|
8,129
|
|
|
1.5
|
%
|
|
1,219
|
|
|
0.5
|
%
|
|
10,822
|
|
|
0.9
|
%
|
||||
Non-cash share-based compensation
|
6,273
|
|
|
1.6
|
%
|
|
7,030
|
|
|
1.3
|
%
|
|
3,726
|
|
|
1.5
|
%
|
|
17,029
|
|
|
1.4
|
%
|
||||
Adjusted operating income (non-GAAP)
|
$
|
88,838
|
|
|
22.3
|
%
|
|
$
|
68,018
|
|
|
12.9
|
%
|
|
$
|
28,887
|
|
|
11.4
|
%
|
|
$
|
185,743
|
|
|
15.8
|
%
|
•
|
a higher mix of Housewares sales at a higher overall operating margin;
|
•
|
a favorable product and channel mix within the Housewares segment;
|
•
|
the favorable impact that higher overall net sales had on operating expense leverage; and
|
•
|
lower advertising expense.
|
•
|
higher annual incentive compensation expense;
|
•
|
acquisition-related expenses;
|
•
|
higher amortization expense; and
|
•
|
higher freight and distribution expense.
|
•
|
tariff exclusion refunds received for certain duties expensed in the second half of fiscal 2019 and the first quarter of fiscal 2020;
|
•
|
a higher mix of Housewares sales at a higher overall operating margin;
|
•
|
a favorable product mix within the Housewares segment;
|
•
|
the favorable impact that higher overall net sales had on operating expense leverage;
|
•
|
lower advertising expense; and
|
•
|
the net favorable comparative impact of pre-tax restructuring charges of $1.5 million.
|
•
|
higher annual incentive compensation expense;
|
•
|
higher freight and distribution expense;
|
•
|
acquisition-related expenses in the current period;
|
•
|
higher amortization expense; and
|
•
|
the net unfavorable impact of foreign currency fluctuations.
|
•
|
the margin impact of a more favorable product and channel mix;
|
•
|
the impact that higher sales had on operating leverage; and
|
•
|
lower advertising expense.
|
•
|
the margin impact of a more favorable product and channel mix;
|
•
|
the impact that higher sales had on operating leverage; and
|
•
|
the net favorable comparative impact of pre-tax restructuring charges of $0.7 million.
|
•
|
higher annual incentive compensation expense;
|
•
|
higher advertising expense; and
|
•
|
higher freight and distribution center expense to support increased retail customer shipments and strong direct-to-consumer demand.
|
•
|
lower advertising expense; and
|
•
|
the margin impact of a more favorable product mix.
|
•
|
tariff exclusion refunds received for certain duties expensed in the second half of fiscal 2019 and first quarter of fiscal 2020;
|
•
|
lower advertising expense; and
|
•
|
lower product liability claim expense.
|
•
|
higher annual incentive compensation expense;
|
•
|
acquisition-related expenses;
|
•
|
higher amortization expense; and
|
•
|
the unfavorable margin impact of a lower mix of personal care sales.
|
•
|
the impact of higher freight expense to meet strong demand in the appliance category;
|
•
|
higher annual incentive and share-based compensation expense related to short- and long-term performance;
|
•
|
higher amortization expense;
|
•
|
acquisition-related expenses; and
|
•
|
the unfavorable margin impact of a lower mix of personal care sales.
|
|
Three Months Ended November 30, 2019
|
||||||||||||||||||||||
|
Income From Continuing Operations
|
|
Diluted EPS From Continuing Operations
|
||||||||||||||||||||
(in thousands, except per share data)
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
||||||||||||
As reported (GAAP)
|
$
|
76,594
|
|
|
$
|
7,895
|
|
|
$
|
68,699
|
|
|
$
|
3.02
|
|
|
$
|
0.31
|
|
|
$
|
2.71
|
|
Acquisition-related expenses
|
1,475
|
|
|
22
|
|
|
1,453
|
|
|
0.06
|
|
|
—
|
|
|
0.06
|
|
||||||
Restructuring charges
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Subtotal
|
78,081
|
|
|
7,917
|
|
|
70,164
|
|
|
3.07
|
|
|
0.31
|
|
|
2.76
|
|
||||||
Amortization of intangible assets
|
4,790
|
|
|
252
|
|
|
4,538
|
|
|
0.19
|
|
|
0.01
|
|
|
0.18
|
|
||||||
Non-cash share-based compensation
|
4,758
|
|
|
343
|
|
|
4,415
|
|
|
0.19
|
|
|
0.01
|
|
|
0.17
|
|
||||||
Adjusted (non-GAAP)
|
$
|
87,629
|
|
|
$
|
8,512
|
|
|
$
|
79,117
|
|
|
$
|
3.45
|
|
|
$
|
0.34
|
|
|
$
|
3.12
|
|
|
|||||||||||||||||||||||
Weighted average shares of common stock used in computing diluted EPS
|
25,396
|
|
|
Three Months Ended November 30, 2018
|
||||||||||||||||||||||
|
Income From Continuing Operations
|
|
Diluted EPS From Continuing Operations
|
||||||||||||||||||||
(in thousands, except per share data)
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
||||||||||||
As reported (GAAP)
|
$
|
58,340
|
|
|
$
|
4,020
|
|
|
$
|
54,320
|
|
|
$
|
2.21
|
|
|
$
|
0.15
|
|
|
$
|
2.06
|
|
Restructuring charges
|
25
|
|
|
2
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Subtotal
|
58,365
|
|
|
4,022
|
|
|
54,343
|
|
|
2.21
|
|
|
0.15
|
|
|
2.06
|
|
||||||
Amortization of intangible assets
|
3,300
|
|
|
46
|
|
|
3,254
|
|
|
0.13
|
|
|
—
|
|
|
0.12
|
|
||||||
Non-cash share-based compensation
|
6,016
|
|
|
415
|
|
|
5,601
|
|
|
0.23
|
|
|
0.02
|
|
|
0.21
|
|
||||||
Adjusted (non-GAAP)
|
$
|
67,681
|
|
|
$
|
4,483
|
|
|
$
|
63,198
|
|
|
$
|
2.57
|
|
|
$
|
0.17
|
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average shares of common stock used in computing diluted EPS
|
|
26,366
|
|
|
Nine Months Ended November 30, 2019
|
||||||||||||||||||||||
|
Income From Continuing Operations
|
|
Diluted EPS From Continuing Operations
|
||||||||||||||||||||
(in thousands, except per share data)
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
||||||||||||
As reported (GAAP)
|
$
|
172,018
|
|
|
$
|
16,530
|
|
|
$
|
155,488
|
|
|
$
|
6.80
|
|
|
$
|
0.65
|
|
|
$
|
6.15
|
|
Acquisition-related expenses
|
1,475
|
|
|
22
|
|
|
1,453
|
|
|
0.06
|
|
|
—
|
|
|
0.06
|
|
||||||
Restructuring charges
|
1,061
|
|
|
68
|
|
|
993
|
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
||||||
Subtotal
|
174,554
|
|
|
16,620
|
|
|
157,934
|
|
|
6.90
|
|
|
0.66
|
|
|
6.24
|
|
||||||
Amortization of intangible assets
|
13,129
|
|
|
621
|
|
|
12,508
|
|
|
0.52
|
|
|
0.02
|
|
|
0.49
|
|
||||||
Non-cash share-based compensation
|
18,743
|
|
|
1,434
|
|
|
17,309
|
|
|
0.74
|
|
|
0.06
|
|
|
0.68
|
|
||||||
Adjusted (non-GAAP)
|
$
|
206,426
|
|
|
$
|
18,675
|
|
|
$
|
187,751
|
|
|
$
|
8.16
|
|
|
$
|
0.74
|
|
|
$
|
7.42
|
|
|
|||||||||||||||||||||||
Weighted average shares of common stock used in computing diluted EPS
|
25,295
|
|
|
Nine Months Ended November 30, 2018
|
||||||||||||||||||||||
|
Income From Continuing Operations
|
|
Diluted EPS From Continuing Operations
|
||||||||||||||||||||
(in thousands, except per share data)
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
|
Before Tax
|
|
Tax
|
|
Net of Tax
|
||||||||||||
As reported (GAAP)
|
$
|
147,045
|
|
|
$
|
10,535
|
|
|
$
|
136,510
|
|
|
$
|
5.54
|
|
|
$
|
0.40
|
|
|
$
|
5.15
|
|
Restructuring charges
|
2,609
|
|
|
185
|
|
|
2,424
|
|
|
0.10
|
|
|
0.01
|
|
|
0.09
|
|
||||||
Subtotal
|
149,654
|
|
|
10,720
|
|
|
138,934
|
|
|
5.64
|
|
|
0.40
|
|
|
5.24
|
|
||||||
Amortization of intangible assets
|
10,822
|
|
|
236
|
|
|
10,586
|
|
|
0.41
|
|
|
0.01
|
|
|
0.40
|
|
||||||
Non-cash share-based compensation
|
17,029
|
|
|
1,021
|
|
|
16,008
|
|
|
0.64
|
|
|
0.04
|
|
|
0.60
|
|
||||||
Adjusted (non-GAAP)
|
$
|
177,505
|
|
|
$
|
11,977
|
|
|
$
|
165,528
|
|
|
$
|
6.69
|
|
|
$
|
0.45
|
|
|
$
|
6.24
|
|
|
|||||||||||||||||||||||
Weighted average shares of common stock used in computing diluted EPS
|
26,520
|
|
|
Nine Months Ended November 30,
|
||||||
|
2019
|
|
2018
|
||||
Accounts Receivable Turnover (Days) (1)
|
68.9
|
|
|
69.4
|
|
||
Inventory Turnover (Times) (1)
|
2.9
|
|
|
3.4
|
|
||
Working Capital (in thousands)
|
$
|
411,340
|
|
|
$
|
338,008
|
|
Current Ratio
|
2.3:1
|
|
|
2.0:1
|
|
||
Ending Debt to Ending Equity Ratio
|
21.0
|
%
|
|
32.9
|
%
|
||
Return on Average Equity (1)
|
18.2
|
%
|
|
14.1
|
%
|
(1)
|
Accounts receivable turnover, inventory turnover and return on average equity computations use 12 month trailing net sales revenue, cost of goods sold or net income components as required by the particular measure. The current and four prior quarters' ending balances of accounts receivable, inventory and equity are used for the purposes of computing the average balance component as required by the particular measure.
|
Applicable Financial Covenant
|
Credit Agreement and MBFC Loan
|
Interest Coverage Ratio
|
EBIT (1) ÷ Interest Expense (1)
|
Minimum Required: 3.00 to 1.00
|
|
Maximum Leverage Ratio
|
Total Current and Long Term Debt (2) ÷
|
EBITDA (1) + Pro Forma Effect of Acquisitions
|
|
Maximum Currently Allowed: 3.50 to 1.00 (3)
|
(1)
|
Computed using totals for the latest reported four consecutive fiscal quarters.
|
(2)
|
Computed using the ending balances as of the latest reported fiscal quarter.
|
(3)
|
In the event a qualified acquisition is consummated, the maximum leverage ratio is 4.25 to 1.00.
|
•
|
our ability to deliver products to our customers in a timely manner and according to their fulfillment standards;
|
•
|
the costs of complying with the business demands and requirements of large sophisticated customers;
|
•
|
our relationships with key customers and licensors;
|
•
|
our dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn;
|
•
|
our dependence on sales to several large customers and the risks associated with any loss or substantial decline in sales to top customers;
|
•
|
expectations regarding Project Refuel and any other proposed restructuring;
|
•
|
expectations regarding recent, pending and future acquisitions or divestitures, including our ability to realize anticipated cost savings, synergies and other benefits along with our ability to effectively integrate acquired businesses or separate divested businesses;
|
•
|
circumstances which may contribute to future impairment of goodwill, intangible or other long-lived assets;
|
•
|
the retention and recruitment of key personnel;
|
•
|
foreign currency exchange rate fluctuations;
|
•
|
risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors;
|
•
|
our dependence on foreign sources of supply and foreign manufacturing, and associated operational risks including, but not limited to, long lead times, consistent local labor availability and capacity, and timely availability of sufficient shipping carrier capacity;
|
•
|
the impact of changing costs of raw materials, labor and energy on cost of goods sold and certain operating expenses;
|
•
|
the risks associated with significant tariffs or other restrictions on imports from China or any retaliatory trade measures taken by China;
|
•
|
the geographic concentration and peak season capacity of certain U.S. distribution facilities increases our exposure to significant shipping disruptions and added shipping and storage costs;
|
•
|
our projections of product demand, sales and net income are highly subjective in nature and future sales and net income could vary in a material amount from such projections;
|
•
|
the risks associated with the use of trademarks licensed from and to third parties;
|
•
|
our ability to develop and introduce a continuing stream of new products to meet changing consumer preferences;
|
•
|
trade barriers, exchange controls, expropriations, and other risks associated with U.S. and foreign operations;
|
•
|
the risks to our liquidity as a result of changes to capital market conditions and other constraints or events that impose constraints on our cash resources and ability to operate our business;
|
•
|
the costs, complexity and challenges of upgrading and managing our global information systems;
|
•
|
the risks associated with cybersecurity and information security breaches;
|
•
|
the risks associated with global legal developments regarding privacy and data security could result in changes to our business practices, penalties, increased cost of operations, or otherwise harm our business;
|
•
|
the risks associated with product recalls, product liability, other claims, and related litigation against us;
|
•
|
the risks associated with accounting for tax positions, tax audits and related disputes with taxing authorities;
|
•
|
the risks of potential changes in laws in the U.S. or abroad, including tax laws, regulations or treaties, employment and health insurance laws and regulations, laws relating to environmental policy, personal data, financial regulation, transportation policy and infrastructure policy along with the costs and complexities of compliance with such laws; and
|
•
|
our ability to continue to avoid classification as a controlled foreign corporation.
|
Period
|
Total Number of
Shares Purchased (1)
|
|
Average Price
Paid per Share
|
|
Total Number of
Shares Purchased as Part of Publicly
Announced Plans
or Programs
|
|
Maximum Dollar Value of
Shares that May
Yet be Purchased
Under the Plans
or Programs
(in thousands) (2)
|
||||||
September 1 to September 30, 2019
|
6,350
|
|
|
$
|
153.83
|
|
|
6,350
|
|
|
$
|
393,038
|
|
October 1 to October 31, 2019
|
116
|
|
|
156.05
|
|
|
116
|
|
|
393,020
|
|
||
November 1 to November 30, 2019
|
43
|
|
|
155.34
|
|
|
43
|
|
|
393,013
|
|
||
Total
|
6,509
|
|
|
$
|
153.88
|
|
|
6,509
|
|
|
|
|
(1)
|
The number of shares above includes shares of common stock acquired from employees who tendered shares to: (i) satisfy the tax withholding on equity awards as part of our long-term incentive plans or (ii) satisfy the exercise price on stock option exercises. For the three months ended November 30, 2019, 6,509 shares were acquired at a weighted average per share price of $153.88.
|
(2)
|
Reflects the remaining dollar value of shares that could be purchased under our current stock repurchase authorization through the expiration or termination of the plan. For additional information, see Note 9 to the accompanying condensed consolidated financial statements.
|
|
|
HELEN OF TROY LIMITED
|
|
|
(Registrant)
|
|
|
|
Date:
|
January 9, 2020
|
/s/ Julien R. Mininberg
|
|
|
Julien R. Mininberg
|
|
|
Chief Executive Officer,
Director and Principal Executive Officer
|
|
|
|
Date:
|
January 9, 2020
|
/s/ Brian L. Grass
|
|
|
Brian L. Grass
|
|
|
Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer
|
1 Year Helen of Troy Chart |
1 Month Helen of Troy Chart |
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